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Volume X, Number 190

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July 06, 2020

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Mexico Reopens June 1: Health and Safety Protocols Announced. Approval to Operate Prior to June 1.

As we reported recently, the Mexican automotive industry and other sectors in Mexico have now been classified as “essential,” with opening permitted by June 1st subject to satisfying certain “health and safety protocols” that had not been announced.  Today, those health and safety protocols (the “protocol”) were communicated by the Mexican government, enabling companies to resume operations even earlier (prior to June 1) to the extent that they meet the protocol requirements and its registration. As expected, the protocol confirmed the implementation guidelines previously issued by the Social Security Institute, which you may find here, and added a section on “Planning and Management” as described further below. 

The implementation of this protocol is mandatory for the transportation manufacturing industry (which includes automotive and aerospace) and for the mining and constructions industries (the “Affected Industries”). Any other company whose activities are deemed essential should use this protocol except for the Planning and Management Section published today which only applies to the Affected Industries.

In addition, since the implementation of this protocol is based on a self-certification, the government has required that those companies in the Affected Industries register with the government and attest that their health and safety measures implemented are consistent with the protocol. Each facility of a company in one of the Affected Industries that intends to resume operations needs to register separately. 

The registration and attestation mentioned above will be made on-line at the webpage specifically created for such purpose and which you may find here. Upon registration and attestation, the Social Security Institute will issue a receipt acknowledgement and will provide a response within 72 hours that either (i) approves the health and safety measures implemented by the company; (ii) requests additional information regarding such implementation; or (iii) denies approval of the protocol’s implementation measures. If the approval is denied, the corresponding company will be able to restart the approval process by providing its detailed Sanitary Safety Protocol which will need to be consistent with the protocol issued by the Mexican government. 

The Mexican government will continue exercising its inspection authority and will be able to assess penalties, including closure of the premises, if companies do not implement such measures consistently with the guidelines in the protocol and their self-certifications.

Finally, the section on “Planning and Management” added to the protocol includes providing a statement: (i) on the creation of a committee or appointment of a responsible person to supervise and follow up on COVID-19 related measures; (ii) that the company provides essential activities as previously defined by the Mexican government; (iii) acknowledging the stoplight system for the municipality where the facility is located (green light which means activities can be resumed without restrictions; yellow light – activities can be resumed subject to certain restrictions and red light- only essential activities may take place subject to the restrictions in place); (iv) that the sanitary measures implemented in the workplace are consistent with its activities and took into consideration vulnerable segments of the population; (v) that includes the existence of emergency telephone numbers including those instances that need to be contacted if sanitary emergencies occur; (vi) the fact that the Business Continuation Plan of the company includes sanitary contingency measures; (vii) the existence of a risk map of the workplace which includes those areas, workstations or activities with biological risks; (viii) the existence of a health and safety diagnosis for the workplace that considers biological agents that may modify the labor environmental conditions or the employees’ health; (ix) the existence of a health and safety program for the workplace or a checklist of preventive and corrective health and safety actions in the workplace, both including sanitary contingencies; (x) the inclusion of actions in their specific civil protection program related to sanitary risks; (xi) the existence of a support group that addresses sanitary risks, if needed; and (xii) whether planning in the company contemplates sanitary emergencies as a threat under a SWOT analysis or in any other analytical tool used in this context. 

Foley has created a multi-disciplinary and multi-jurisdictional team to respond to COVID 19, which has prepared a wealth of topical client resources and is prepared to help our clients meet the legal and business challenges that the coronavirus outbreak is creating for stakeholders across a range of industries. Click here for Foley’s Coronavirus Resource Center to stay apprised of relevant developments, insights and resources to support your business during this challenging time. To receive this content directly in your inbox, click here and submit the form. For more information, please contact your Foley relationship partner.

© 2020 Foley & Lardner LLPNational Law Review, Volume X, Number 139

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About this Author

Roberto Arena Reyes Retana, Foley Lardner Law Firm, Mexico, Insurance and Energy Law Attorney
Partner

Roberto Arena is a trusted advisor for businesses in the energy, insurance, electricity, financial, and oil and gas sectors, including many public companies with an interest in international tax planning and inbound and outbound international business transactions. He often handles sophisticated interpretation of treaties to avoid double taxation, large-scale mergers and acquisitions, real estate litigation, corporate organizations and reorganizations, and multi-jurisdictional litigation-related matters.

Roberto is the founding partner of the...

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Daniel Aranda Corporate & Trial Attorney Foley & Lardner Mexico City
Partner

Daniel Aranda is a bilingual, bicultural corporate and trial lawyer serving clients in the U.S., Mexican and international energy law, pipeline, banking and finance sectors. Daniel is also a member of Foley's Energy Industry, and Government Procurement Practice in Mexico City.

Daniel represents foreign and domestic clients with all aspects of their international energy law needs, including:

  • Representation before the Mexican energy authorities (CRE, CNH, Ministry of Energy, Pemex and CFE)
  • Mergers and acquisitions
  • Project development and project finance transactions
  • Infrastructure and government procurement
  • Divestitures and buyouts
  • Strategic alliances
  • Corporate reorganizations

He handles sophisticated contracts and business matters involving both domestic and cross-border transactions. His financing work focuses primarily on structuring, documenting and negotiating debt-related transactions. These include workouts representing developers, lenders and borrowers on asset-based and unsecured lending. He has extensive experience representing clients facing conflicts of interest between shareholders and negotiating cash-out mechanisms.

Practice Areas

  • Transactions
  • Corporate
  • Business Litigation & Dispute Resolution 
  • Energy Litigation
  • Finance
  • Mergers & Acquisitions

Industry Teams

  • Technology
  • Energy
  • Supply Chain
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Andres Alvarez, Foley Lardner Law Firm, Dallas, Foreign Legal Consultant
Foreign Legal Consultant

Andres Alvarez is an experienced Foreign Legal Consultant in the corporate practice at Foley Gardere. He serves as a liaison on the interactions between the Dallas and Mexico City offices regarding all legal subject matters. He focuses on commercial matters, corporate and transactional law, as well as international trade and customs. Andres brings a deep understanding of decision-making processes and analysis of information and data, with experience in the technology, financial, consumer, hospitality and industrial sectors.

Andres previously...

214-999-4341
Ann Marie Uetz, Foley Lardner, Debtor Representation, Bankruptcy Lawyer
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Ann Marie Uetz is a partner and trial attorney with Foley & Lardner LLP, where she represents clients in a variety of industries in all aspects of their contracts and business disputes. She also represents debtors, creditors and secured and unsecured lenders in all facets of restructuring. Ms. Uetz focuses her practice on business litigation and bankruptcy, two of Foley’s practice areas recently ranked by U.S. News—Best Lawyers® as “national First-Tier” practices in recognition of excellence in client service.

313-234-7114
Steven H. Hilfinger, Foley Lardner, Senior Lender Counsel, Global Finance Lawyer
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Steve Hilfinger is a partner and business lawyer with Foley & Lardner LLP. He has more than 25 years of transactional and finance experience, including representing private and public companies, senior lenders, mezzanine lenders and borrowers, venture capital funds and private equity funds, automotive suppliers and other manufacturers. Mr. Hilfinger focuses his practice in corporate and securities law matters, including mergers and acquisitions, corporate restructurings, private equity and venture capital transactions, debt and equity finance transactions, business...

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